GM CEO Stepping Down, Chrysler Insolvent Again

[nsap]

GM CEO Stepping Down Soon, Chrysler Insolvent Again
The weekend of news when it comes to GM and Chrysler...
www.gminsidenews.com
March 29, 2009
By: Nsap

It's been a busy weekend here at GMInsidenews. First we're told that a bankruptcy deadline is going to be put in place for General Motors and Chrysler LLC by the U.S. government tomorrow, now we hear more news. Today sources leaked information that GM CEO Rick Wagoner is going to be stepping down from the company. GMI sources have confirmed that Rick will be stepping down, supposedly to "retire" on March 31st. CNBC is reported that senior officials at the White House suggest that the government kindly suggested that Wagoner step down, but it was not "forced." It is expected that GM COO Fritz Henderson will be his replacement.

In related news, GMI has been told that Chrysler LLC is essentially insolvent at the moment; operating with $1.8 Billion in cash on hand, with at least $2.3 Billion needed to maintain normal operation. It is expected that the U.S. government will throw them a lifeline of funding to stay going until the new bankruptcy deadline. GM will also need more funding if they reach an agreement with their bondholders. GM currently has about $13.5 Billion in cash on hand, with a cash minimum of $11 Billion needed for daily operation.

For more details on Chrysler and GM: Chrysler Running out of Cash, GM Will Need More too

[jmlee0695]

Will his replacement be Henderson or is there someone else who may be his replacement?

[FenwickHockey65]

Will his replacement be Henderson or is there someone else who may be his replacement?

Multiple sources have said it's Henderson.

[96_impala_ss]

Ummm......

WOW!!

I dont know whether to be happy because the wagon fell down or sad because GM is dying in Obamas hands as well as Chrysler.

[Ming]

Thank you, Mr. Wagoner.

Performance questions aside, GM needs a new image, and it won't get that with the same person who's either been at the helm or near the top of GM - especially in North America - for the past decade.

GM doesn't need a "nice guy" at the top. It doesn't need a guy who delegates everything or a boss who is "great to work for". It needs someone who can crack the whip and who has a strong idea of what a wholly revamped GM can look like. Not an improved, barely profitable GM that waits for the next SUV boom or depends too much on full size truck sales to support crushing legacy costs, but a whole new company.

GM doesn't need Steve Jobs himself, but they do need a Steve Jobs-like figurehead who not only oozes confidence in his ability to recognize what is trendy and and stay ahead of trends, but someone who can rally the company and (more importantly) customers behind a strong new image of what GM --- or perhaps even a rebirth of GM under a new company name..."Greater Momentum", perhaps - can be.

People can argue the missteps and successes under Rick Wagoner all they want. But new blood and a bold new vision have been badly needed for some time. Those likely to disagree include people who fear for their jobs and prefer the status quo over the radical changes GM needs to become a brand that most, if not all Americans can look at once again as a maker of desirable cars....not the laughing-stock GM has become.

[Hunid Racks]

With Rick "supposedly" leaving, Tom Stephens from Powertrain moving into Lutz's slot, what other restructuring will happen?

Buickman to take over?

Damn, if Roger Penske was a couple dozen years younger, he would be everything GM needs.

[rhvfd10]

This whole business is a shame... Good luck Mr Wagoner.

[hawaiitahoe]

GM is here to stay!!

What i hope for chrysler is in the future when it is stronger, it can break off its alliance with Fiat and be independant again.
If thats even possible that is.

[AMERICA 123]

Well, here we go.

Early by a bit.

Definitely meant to be pre emptive.

Monday forward - lot's of butter.

Obviously Toyota's year end results are going to surprisingly bad when announced later in the week.

And there may be some more to go with that concerning Lexus and some other.

Also some for the rest of Japan Inc.

[PontiacBixler]

Oh happy day!!!!!!!!

[kneedragger]

So... party at buickmans?

[civilzues]

so he's getting out before they go under?

[mbukukanyau]

I think its good for Wagoner to step aside, given that its been really a rough time for him. His main achievement is the product focused company GM is now..

[KAD]

I agree with Ming, GM needs a Steve Jobs-like figure to take charge now. Someone to cut through the crap and get GM healthy again.

These next few weeks and months will be very interesting...

[mikmak]

I wonder if he'll be the first GM CEO to not get a Golden Handshake!

Bye Bye Rick.